Nearly third of mortgage brokers confident about 2024, survey finds

Crystal Specialist Finance’s annual survey, which collated views of over 10,000 mortgage brokers, only eight per cent are worried about 2024, which is a fall from 15 per cent from the prior year.

The survey found that 2023 was challenging for the broker market, with only 22 per cent agreeing that it was a good year for their business. This is a fall from 48 per cent in 2022.

Over three quarters, 77 per cent of mortgage brokers, said that business was the same or down on the previous year, which is up from 53 per cent in 2022.

Interest rates key concern for mortgage brokers

Nearly three quarters said high interest rates and interest rate uncertainty were their key concern, similar to figures last year.

The cost of living crisis has fallen as a concern to 64 per cent, down from 76 per cent last year, and high inflation does not figure in the top challenges for business growth in 2024.

Only 17 per cent believe there are further base rate rises and 39 per cent are predicting a fall.

Nearly three quarters also predicted that Labour would have a landslide victory in the possible general election this year.

Diversification remains key

Around two thirds of brokers say they expect to diversify this year, continuing a trend from this year.

Last year, 35 per cent of brokers said they had moved into bridging, 28 per cent into buy to let and 26 per cent into commercial lending.

Nearly three quarters of those surveyed said they planned to work with a distributor this year, pointing to the complexity of their cases, complexity of income streams and clients looking to use bridging finance for portfolio and auction purchases as the main drivers for doing so.

Specialist distribution and technology are becoming increasingly important for brokers, the survey added.

‘2024 presents opportunities for the resilient broker’

Jo Breeden (pictured), managing director at Crystal Specialist Finance, said that 2023 “should have been the return to some form of normality to the market”, however, the base rate rises to cool inflation led to a cooling of the property market.

He continued: “Our research has revealed that brokers remain uncertain about this year, have diversified into new markets to bolster their businesses and see the role of a distributor like Crystal as increasingly important.

“While the wider residential housing market has further to fall as we start 2024, brokers are more confident about the outlook. 2024 presents opportunities for the resilient broker that is prepared to venture into new markets – such as bridging, commercial finance and complex buy to let – where Crystal specialises.

“As ever, we will continue to provide our expert, award winning service as the industry faces into yet another challenging year.”